Morning All,
HMD have made an excellent release this morning (attached) announcing their first full commercial rollout of the HeraCARE platform with Joondalup Health Campus (JHC) in WA. This is a very important step for the validation of the platform and the SaaS Revenue model HMD are seeking to build, as HeraCARE becomes integral to a new standard of care for pregnancy.
As a reminder JHC delivers in excess of 3,000 births annually and is owned by Australia’s largest private hospital group Ramsay Healthcare which deliver approx. 35,000 births annually.
For those interested HMD is hosting an investor webinar at 10:30am AEST TODAY
Zoom Link:https://us02web.zoom.us/webinar/register/WN_UBwkpXZ1SDWus5O5_jD9iQ
Key Takeaways;
- This deal isclear validation of the commercialisation strategy for HeraCARE, undertaken by the board over 18 months ago. It began with clinical validation of the HeraCARE platform at JHC, then transitioned to a paid pilot and on success of the paid pilot a full commercial rollout has been achieved. This agreement is a great first step in commercialising the HeraCARE platform allowing investors to now look into the HMD pipeline with greater confidence management have an ability to deliver similar type commercial agreements.
- HMD hassuccessfully deployed the SaaS revenue model it is seeking to build. The licence agreement reached provides $50 per licence per month with upfront payments for hardware. On full deployment JHC will have contracted 1,500 licences but this will be a staged rollout adding ~400 licences per quarter for the next 4 quarters.
- Important strategic reference site for Australia – this commercial rollout provides opportunity to expand further into the Ramsay network of hospitals but will also be an important reference site for other hospitals outside Ramsay currently in the Australian pipeline
- Don’t be distracted by the year 1 contracted value of $220,000.Once full deployment has been reached this contract is worth ~A$900,000 per annum(1,500 licences x 12 months x A$50 per licence per month).
- Don’t be distracted by the 1 year term. Ramsay have a halt on all new projects (except this one), the fact this agreement has been reached and is moving forward is major endorsement of how important JHC sees offering remote maternal telehealth monitoring. This is of particular importance to JHC when WA open their borders which will see COVID start to be spread in the community. HMD and JHC intend for this contract to be extended but will take a number of months for the extension to be approved by Ramsay.
- This is just the beginning with a number of further major near term catalysts (below) to follow over the coming months all which have the ability to continue to materially rerate the stock –
- Mednax Inc - commercial agreement to be reached following successful paid pilots (Mednax are the largest provider of maternity services in the US – supporting 1 in 4 pregnancies, 1 million births annually)
- Sheba - pilot results from Sheba Group are due (top 10 global hospital group and largest hospital in Israel , ~ 50,000 births annually), which on positive results will lead to commercial discussions
- Mayo Clinic – no. 1 ranked hospital in the world. Mayo have undertaken a clinical trial over the last 12 months of the full HeraCARE solution similar to that undertaken at JHC. As important as JHC is, Mayo is recognised globally and will provide significant validation in the adoption of the HeraCARE platform as part of a new standard of care for pregnancy globally
- JHC – JHC undertook an extension of the clinical trial completed early last year focused on high risk pregnancy. These results are expected in the coming weeks.
- Spain – the Catalonian government is intending to announce the contract to supply a telehealth solution for the regency. HeraMED is one of two companies shortlisted
HeraMED CEO and Cofounder Mr. David Grobermansaid today on the agreement: “This is a truly significant milestone for HeraMED. I am delighted we have reached this agreement with JHC as it demonstrates that our strategy of delivering clinical validation of the HeraCARE platform, which led to a successful paid pilot, provided the correct foundation for broader commercialrolloutof HeraCARE within the hospital. 2022 will be a transformative year for HeraMED as we work towards delivering similar deployments with other key partners.”
JHC Acting Chief Executive Benjamin Irish said today on this agreement:“Having the ability to provide an option for expectant mothers to have telehealth appointments using this remote monitoring solution will be particularly beneficial during 2022 with the spread of Omicron. It reduces the need for women to attend antenatal appointments in person so frequently, unless any complication is detected. This allows us to continue providing the highest quality care antenatally with the added benefits and convenience of reducing the need to come into hospital unless necessary.
The use of this technology provides obstetrician and midwives important clinical data so they are informed and can provide immediate real-time advice using telehealth appointments.”
Key Highlights from today’s release
●Joondalup Health Campus (JHC) has entered into a full-scale long-term commercial agreement with medical data and technology company HeraMED (ASX:HMD) to adopt the complete HeraCARE solution as the primary standard of care offered for their patients
●Commercial terms reached under the paid pilot agreement, including the SaaS fees, will extend for 12 months, with both parties exploring extension of the contract for a further three years
●The contract value for the first 12 months is expected to be approximately A$220,000
●HMD will progressively deliverHeraCARE SaaS licences (including the HeraBEAT smart foetal monitors) tosupport JHC’s services expansion
●This is the first major Healthcare group to adopt the comprehensive HeraCARE virtual and remote monitoring solution as part of their innovative care model for pregnant mothers
●This agreement validates HeraMED’s commercialisation strategy undertaking clinical trials leading to paid pilots and then ultimately full commercial deployment within a leading hospital group
●JHC (part of Ramsay Health Care) is one of Western Australia’s largest hospitals, a leading medical institution, and a maternity care service provider to an average of 3,000 expectant mothers annually
About the Commercial Agreement with JHC
- The commercial agreement is a 12-month extension of the commercial terms agreed under the paid pilot.
- HMD and JHC will continue discussions to extend this agreement for anadditionalthree years
- HeraMED will gradually supply JHC with licences and equipment at a pace of approximately 400 licences each quarterto support JHC’s requirements to offer the new connected maternity care model to their audience of pregnancies
- Total estimated HeraCARE licenses fee for year number one based on the accumulated licenses as described isapproximatelyA$ 220,000
